BILL NUMBER: AB 2933	CHAPTERED  09/19/00

	CHAPTER   534
	FILED WITH SECRETARY OF STATE   SEPTEMBER 19, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 18, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	PASSED THE SENATE   AUGUST 30, 2000
	AMENDED IN SENATE   AUGUST 25, 2000
	AMENDED IN SENATE   AUGUST 14, 2000
	AMENDED IN SENATE   AUGUST 9, 2000
	AMENDED IN SENATE   AUGUST 7, 2000
	AMENDED IN ASSEMBLY   MAY 24, 2000

INTRODUCED BY   Committee on Veterans Affairs (Dutra (Chair),
Baldwin, Correa, Dickerson, Havice, and Nakano)

                        MARCH 23, 2000

   An act to amend Sections 987.59 and 987.67 of, and to add Section
66.5 to, the Military and Veterans Code, relating to veterans, and
declaring the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2933, Committee on Veterans Affairs.  Cal-Vet Loan Program.
   Existing law provides for farm and home purchase benefits for
qualifying veterans under the Veterans' Farm and Home Purchase Act of
1974, and subsequent acts, which are collectively referred to as the
Cal-Vet Loan Program.
   This bill would require that one member of the California Veterans
Board have expertise in real estate finance and that one member have
expertise in senior health care.
   The bill would require the Department of Veterans Affairs to take
specified actions to efficiently process and approve Cal-Vet loans.
   Existing law requires that an appraisement of the market value of
property be filed with the department before the property is
purchased.
   This bill would require the department to establish certain
guidelines and establish an outreach program regarding that
appraisement process, as specified.
  The bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 66.5 is added to the Military and Veterans
Code, to read:
   66.5.  (a) One member of the board shall have substantial training
or professional expertise in mortgage lending and real estate
finance.
   (b) One other member of the board shall have substantial training
or professional expertise in geriatrics, gerontology, or long-term
care.
   (c) Nothing in this section shall be construed to prohibit any
member of the board from serving the remainder of his or her term.
  SEC. 2.  Section 987.59 of the Military and Veterans Code is
amended to read:
   987.59.  (a) When a veteran has been authorized by the department
to select a farm or home, he or she shall submit that selection for
approval, as the department prescribes.  The department shall have
the sole responsibility for the underwriting and approval of all farm
or home loans, subject to this article.
   (b) In order to achieve efficient processing and approval of
loans, the department shall do all of the following:
   (1) The department shall establish all systems, procedures,
technologies, and guidelines necessary to achieve efficient
processing of farm or home loans submitted for approval by the
department, with the intent of achieving loan delivery within an
average of 30 days.  These shall include, but may not be limited to,
systems and technologies for the electronic transfer of loan funds
and related fees.
   (2) The department shall ensure optimal participation of qualified
mortgage brokers and other qualified financial institutions and
shall review, standardize, and where possible simplify, the
documentation required of mortgage brokers and other qualified
financial institutions.  The department shall provide adequate
training and certification of participating mortgage brokers and
other qualified financial institutions.
   (3) The department shall establish an outreach program to
effectively disseminate information concerning the simplified and
more efficient loan process to professional real estate and mortgage
broker associations.
   (4) The department shall offer broker compensation and fees
sufficient to ensure optimal participation of the private sector in
the loan origination process and consistent with the veteran borrower'
s interest in efficient and economical loan processing.
   (5) The department shall provide access over the Internet to
veteran applicants and their authorized agents to enable loan
applications to be filed, processed, and tracked electronically.
   (6) In cooperation with the Office of Administrative Law, the
department shall, on or before October 30, 2000, promulgate all
regulations necessary to implement the provisions of this section and
Section 987.67, with the intent of achieving loan delivery within an
average of 30 days through measures including, but not limited to,
optimal participation in the loan origination process by qualified
private sector real estate mortgage associations.
  SEC. 3.  Section 987.67 of the Military and Veterans Code is
amended to read:
   987.67.  (a) Before the purchase of any property by the department
there shall be filed with the department (1) an appraisement of the
market value of the property by an employee or an authorized agent of
the department or (2) an appraisement of the market value of the
property by either the Federal Housing Administration or the Veteran'
s Administration, and in addition there may be filed with the
department an appraisement of the market value of the property by an
authorized appraiser of a banking corporation formed under the laws
of this state or of a national banking association having a place of
business in this state.  Each appraisement shall be certified by the
maker thereof.  The certification shall state that it is made in good
faith, and that the valuation is honestly determined and represents
the bona fide opinion of the maker.
   (b) The department shall establish guidelines to ensure greater
participation of state-licensed real estate appraisers and shall
establish an outreach program to effectively disseminate information
concerning the participation to professional appraisal associations
or trade groups.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to expedite the adoption of regulations for the efficient
processing and approval of Cal-Vet loans, it is necessary that this
act take effect immediately.
